The blockchain remittance service is provided by Telenor’s Easypaisa and
Valyou, a financial technology company that provides remittances to
underbanked communities. The plan was unveiled at an event in Islamabad
attended by State Bank of Pakistan Governor Tariq Bajwa, marking a major
milestone in the country’s journey to promote financial inclusion.

The blockchain technology will significantly boost the speed and
efficiency of remittances from Malaysia to Pakistan. It will also ensure
the money transfers are highly secure and transparent, as all
information stored, shared, or uploaded through the blockchain
remittance platform will be encrypted with advanced protocols in order
to protect users’ privacy.

“This puts Pakistan on the map of very few countries in the world that
have launched International Remittance using blockchain technology,”
said Tariq Bajwa, Governor, State Bank of Pakistan, who initiated the
launch of the event. “At around USD 20 billion per year, international
remittances are important from the perspective of overall macroeconomic
stability and their positive spillover in improving lives of millions of
families. Home remittances contributed to over 6% in GDP, equivalent to
over 50% of our trade deficit, 85% of exports and over one-third of
imports during FY 2017-18.”

He also stated that he expects that the financial sector will take
advantage of current favorable market environment by investing in
innovative technologies and product offerings to expand services and
broaden access to financial services in the country.

The blockchain-powered remittance service will make round-the-clock,
real-time money transfers between the two countries possible at a
competitive exchange rate, with Alipay’s transaction fees waived during
the one-year trial period.

“The new remittance service is one of the examples of how emerging
technologies can help countries meet their digital and financial
inclusion goals. We’re thrilled to be part of Pakistan’s financial
inclusion efforts and we’re dedicated to exploring breakthroughs and
applying them to benefit more people in more places,” said Eric Jing,
Chairman and CEO of Ant Financial. “I would like to take this
opportunity to express our gratitude to State Bank of Pakistan for all
the great support to make this project possible. I congratulate both
Easypaisa and Valyou on this major development that will facilitate the
people in both countries, putting Pakistan on the map of fintech
innovation and promoting financial inclusion.”

By eliminating intermediary costs, the new remittance service reduces
transactional cost for end-users, while the blockchain technology
enables both senders and receivers to track their money every step of
the way, significantly boosting the service’s efficiency and safety.

“The transparency and swiftness this innovative and first-of-its-kind
service brings to Pakistani users of international remittance will
redefine international money transfer in the country,” said Roar Bjærum
, Senior Vice President, Telenor Financial Services, Telenor Group.
“Currently, Pakistan receives about USD 1 billion in home remittances
from Malaysia and this Easypaisa-Valyou collaboration is going to change
it for the better. The service is the result of the close partnership
between Telenor Group and Ant Financial Services and epitomizes our
shared vision to empower societies by bringing inclusive financial
services to the world.”

The service aims to promote and encourage the use of formal channels for
remittances, with all existing incentives offered by State Bank of
Pakistan for promotion of international remittance through mobile wallet
being applicable for this service.

“The international remittance service epitomizes the shared vision of
Telenor Group and Ant Financial to empower societies by bringing
inclusive financial services to the world,” said Shahid Mustafa,
President & CEO, Telenor Microfinance Bank. “It is a bold statement of
the wonders new technologies can do to transform the financial services
landscape in Pakistan which remains a top priority on the country’s
national agenda.”

Pakistan is in the process of strengthening its financial system, with
the Pakistani government recently enhancing its National Financial
Inclusion Strategy through a five-year plan that aims to create three
million jobs and additional exports of $5.5 billion USD by improving
SMEs’ access to financing.

Starting from 2015, Alipay has formed nine strategic partnerships with
local partners outside Mainland China. As of today, Alipay, together
with its global partners, are serving over 1 billion active users
worldwide.

About Ant Financial

Ant Financial Services Group is dedicated to using technology to bring
the world equal opportunities. Our technologies, including blockchain,
artificial intelligence, security, Internet of Things and computing,
empower us and our ecosystem partners to serve the unbanked and
underbanked, bringing more secure, transparent, cost-effective and
inclusive financial services to individuals and SMEs worldwide.

Ant Financial has formed international partnerships with global
strategic partners to serve local users in those markets, and we serve
Chinese travelers overseas by connecting Alipay with online and offline
merchants in popular destinations. As of January 2019, together with its
global JV partners, Ant Financial served 1 billion users worldwide.
Brands under Ant Financial Services Group include Alipay, Ant Fortune,
Zhima Credit, MYbank and Ant Financial Cloud.

About Telenor Group

Telenor Group is a leading telecommunications company across Scandinavia
and Asia with 173 million customers and annual sales of around USD 14
billion (2017). We hold #1 or #2 positions in most of our markets.
Majority ownership of all core assets enables strong governance and
global scale benefits. We are committed to responsible business conduct
and driven by the ambition of empowering societies. Connectivity has
been Telenor’s domain for more than 160 years, and our purpose is to
connect our customers to what matters most. Telenor is listed at Oslo
Stock Exchange under the ticker TEL. For more information, see www.telenor.com.

About Telenor Microfinance Bank Limited

Telenor Microfinance Bank (TMB) offers Easypaisa, Pakistan's first
mobile financial services platform launched in 2009, which is also the
first and only GSMA Mobile Money Certified service. Easypaisa has since
developed into the largest branchless banking service in Pakistan in
terms of agent network, active accounts, and transaction value,
according to the State Bank of Pakistan. TMB also provides microfinance
and related financial services to the less privileged and unbanked
segment of the Pakistani society.

Ant Financial Services Group (“Ant Financial”), subsidiary of Alibaba
Group has bought 45% stake in Telenor Microfinance Bank, a subsidiary of
Telenor Group, to further develop TMB’s mobile payment and digital
financial services. This strategic partnership between Telenor Group and
Ant Financial combines TMB’s knowledge and local market presence and
Ant’s technology in Alipay, the world’s largest digital payment
platform, and other financial services, to bring mobile payment and
inclusive financial services to individuals as well as small and micro
businesses in Pakistan.

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AFP is a global news agency delivering fast, accurate, in-depth coverage of the events shaping our world from conflicts to politics, economics, sports, entertainment and the latest breakthroughs in health, science and technology.